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Jun 30, 2022

Thermon Q1 2023 Earnings Report

Reported record Q1 revenue, increased net income, and completed the acquisition of Powerblanket.

Key Takeaways

Thermon reported a strong start to fiscal year 2023 with record Q1 revenue up 34%, net income up $6.9 million, and adjusted EBITDA growth of 106% compared to Q1 2022. The company also completed the acquisition of Powerblanket and revised its fiscal year 2023 revenue and earnings guidance upwards.

Record Q1 revenue increased by 34% year-over-year.

Net income increased by $6.9 million compared to Q1 2022.

Adjusted EBITDA grew by 106% compared to the same period last year.

Completed the acquisition of Powerblanket.

Total Revenue
$95.4M
Previous year: $71.2M
+34.1%
EPS
$0.25
Previous year: $0.07
+257.1%
Gross Margin
39%
Previous year: 39.6%
-1.5%
Backlog
$165M
Previous year: $116M
+42.5%
Adjusted EBITDA
$16.6M
Previous year: $9.72M
+70.8%
Gross Profit
$37.2M
Previous year: $28.2M
+32.1%
Cash and Equivalents
$40M
Previous year: $41.1M
-2.6%
Free Cash Flow
$10.3M
Previous year: $1.63M
+534.2%
Total Assets
$662M
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Thermon

Thermon

Forward Guidance

For the fiscal year ending March 31, 2023, Thermon expects revenue to be approximately $380-$405 million, including $18 million from the Powerblanket acquisition. GAAP EPS is expected to be approximately $0.85-$0.97 per share, with Adjusted EPS to be approximately $1.07-$1.19 per share.

Positive Outlook

  • Revenue will be approximately $380-$405 million.
  • Includes $18 million of revenue contribution from the Powerblanket acquisition.
  • GAAP EPS in Fiscal 2023 to be approximately $0.85-$0.97 per share.
  • Adjusted EPS to be approximately $1.07-$1.19 per share.
  • Continue to evaluate additional inorganic growth opportunities while investing in our long-term strategic initiatives.

Challenges Ahead

  • General economic conditions and cyclicality in the markets.
  • Future growth of energy, chemical processing and power generation capital investments.
  • Ability to operate successfully in foreign countries.
  • Ability to successfully develop and improve our products and successfully implement new technologies.
  • Competition from various other sources providing similar heat tracing and process heating products and services, or alternative technologies, to customers.